Bob Evans Farms (BOBE) 8-K Other Events

Investor Presentation

(revised 12.4.15)

Mark Hood, Chief Administrative and Chief Financial Officer

Scott Taggart, VP, Investor Relations

1

Exhibit 99.1

SAFE HARBOR STATEMENT

2

Under the Private Securities Litigation Reform Act of 1995

Certain statements in this presentation that are not historical facts are forward-looking statements.  Forward-looking statements involve various

important assumptions, risks and uncertainties.  Actual results may differ materially from those predicted by the forward-looking statements

because of various factors and possible events, including, without limitation:

Our inability to improve our operational and marketing execution and performance, including a failure to achieve and maintain positive

same-store sales;

The actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity;

Changing and adverse business conditions, including higher energy and commodity costs, including but not limited to protein costs for beef,

pork (sows and other pork products) and chicken;

Overall economic conditions that may affect consumer spending, either nationwide or in one or more of the Company’s major markets;

Competition in the restaurant and food products industries, including the ability to recruit, train, and retain qualified employees;

Ability to control restaurant and plant operating costs, which are impacted by the availability and cost of food, labor, workers compensation,

group health care, fuel and utilities such as gas, electricity and water;

The effects of our increase of indebtedness and associated restrictions on our financial and operating flexibility;

The availability and cost of suitable sites for new restaurant development and our ability to identify those sites;

Adverse weather conditions in locations where we operate our restaurants impacting sales and customer travel;

Consumer acceptance of changes in menu offerings, atmosphere and/or service procedures, as well as the price of menu and food product

offerings;

Consumer

acceptance

of

our

restaurant

concepts

in

existing

and

new

geographic

areas,

and

Consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products.

We

also

bear

the

risk

of

incorrectly

analyzing

these

risks

or

developing

strategies

to

address

them

that

prove

to

be

unsuccessful.

Certain

risks,

uncertainties

and

assumptions

are

discussed

under

the

heading

“Risk

Factors”

in

Item

1A

of

our

Annual

Report

on

Form

10-K

for

the

fiscal

year

ended

April

24,

2015.

We

note

these

factors

for

investors

as

contemplated

by

the

Private

Securities

Litigation

Reform

Act

of

1995.

It

is

impossible

to

predict

or

identify

all

such

risk

factors.

Consequently,

you

should

not

consider

any

such

list

to

be

a

complete

set

of

all

potential

risks

and

uncertainties.

Forward-looking

statements

speak

only

as

of

the

date

on

which

they

are

made,

and

we

undertake

no

obligation

to

update

any

forward-looking

statement

to

reflect

circumstances

or

events

that

occur

after

the

date

on

which

the

statement

is

made

to

reflect

unanticipated

events.

Any

further

disclosures

in

our

filings

with

the

Securities

and

Exchange

Commission,

as

well

as

press

releases

and

other

communications, 

should

also

be

consulted.

All

subsequent

written

and

oral

forward-looking

statements

attributable

to

us

or

any

person

acting

on

behalf

of

the

company

are

qualified

by

the

cautionary

statements

in

this

section.

COMPANY FACT SHEET

FISCAL 2016 Q2

NASDAQ: BOBE

NEW RESTAURANTS

FY’15          7

FY’16E        1

547 Restaurants

18 States

as of 10/23/15

194

56

14

19

1

50

30

36

8

1

7

28

24

3

16

7

4

49

AVERAGE UNIT VOLUME

$1.72  million (FY’ 15)

Bob Evans Farms, Inc. is comprised of two key business segments:  Bob Evans Restaurants and BEF Foods.  Bob Evans

Restaurants operates 547 full-service restaurants located in 18 states with a heavy concentration in the Midwest.  BEF

Foods produces and distributes refrigerated side dishes, pork sausage and a variety of refrigerated and frozen

convenience food items through retail and food service channels.

.

Bob

Evans

Farms

Investor

Relations

www.bobevans.com

8111

Smith’s

Mill

Road

New

Albany,

Ohio

43054

3

Bob Evans/Owens

Bob Evans Growth Markets

Bob Evans

FOUR KEY LINES OF BUSINESS

Sausage, Refrigerated Sides, Frozen and Food Service

Sold at 30,000+ retail locations in 50 states and Canada

4

BOB EVANS RESTAURANTS

BEF FOODS, INC.

BUSINESS SEGMENTS (FY 2015)

5

28%

72%

BOB EVANS’ TURNAROUND PLAN:  4 PRIORITIES

6

1.

Improve the brand experience for our

restaurant guests and grocery customers

2.

Profitably increase sales in our restaurants,

and increase points of distribution of our

consumer food products

3.

Reduce costs, particularly at the corporate level

4.

Allocate capital efficiently

•

176% increase in non-GAAP

operating income

•

Refrigerated side-dish volume up

14.2%, sausage up 15.1%

•

Foodservice volume down 26.8%,

in-line with plan, as that volume is

replaced with higher-margin

branded-retail growth

•

50%+ national market share of

refrigerated dinner side dishes

maintained during the quarter, side

dishes represent more than 50% of

total pounds sold, an historic high

•

Recovering lost sausage share

through prudent trade spending

focused in core markets

•

ERP implemented throughout plant

network

•

Positioned well for a strong holiday

selling season

•

2016 non-GAAP diluted EPS

guidance of $1.85 to $2.00

•

Saed Mohseni named president and

CEO

•

Identified nearly $5 million of

additional cost savings, bringing

expected fiscal 2016 savings to

nearly $20 million, equating to an

annual run rate of approximately

$28 million.

•

Company repurchased $44.4 million

(1.0 million shares) during Q2 2016;

Board approved $100 million

increase in share repurchase

authorization to $250 million; $131.9

million purchased fiscal year 2016

through November 30, 2015

•

Board approved a 9.7% increase in

the quarterly dividend to $0.34 per

share.

•

34% decline in non-GAAP

operating income

•

Same-store sales declined 3.2%

due primarily to a decline in non-

discounted transactions, partially

offset by increased average check

of discounted transactions; new

menu and products introduced to

improve sales trend

•

Investing in labor to support guest

experience in FY’16; however

focused on opportunities for

achieving overall labor savings over

the long-term

•

Continued menu innovation and

food quality improvements planned

throughout remainder of year

•

New restaurant technology platform

to facilitate better food and labor

mgt, enhance guest experience, and

enable guest loyalty program

•

New analytics/tools to further

improve discounting on a market-

and restaurant level to improve

discounting ROI

2Q

2016

UPDATE:

NON-GAAP

(1)

DILUTED

EPS

$0.41

VS

$0.36

LY

Please refer to pages 38-40  for a reconciliation of non-GAAP to GAAP items.  

7

1

SUMMARY OF PERFORMANCE DRIVERS: FISCAL 2016 GUIDANCE

8

Current share repurchase authorization: up to $250 million ($132 million purchased through November 30, 2015)

1Q (actual)

2Q (actual)

3Q

4Q 

Full

Year

sss% 2016 (guidance)

-0.3%

-3.2%

negative

low-single

digits

negative

low-single

digits

-2.5% to

-1.0%

sss% 2015 (actual)

-2.0%

0.0%

3.8%

2.1%

0.9%

sow costs (per hundredweight) 2016 (guidance)

$38.75

$53.31

$57

$60

$53

sow costs (per hundredweight) 2015 (actual)

$87.87

$78.82

$67.79

$43.02

$69.41

Guidance Metric

FY ‘16

Consolidated net sales

approximately $1.35 billion

Bob Evans Restaurants same-store sales

-2.5% to -1.0 percent

Bob Evans Restaurants commodity pricing

approximately 3.5% (including eggs)

BEF Foods net sales

$380 to $390 million

Capital expenditures

$78 to $82 million

ERP implementation (included in S,G&A)

$2.0 to $2.5 million

Depreciation and amortization

$81 to $84 million

Net interest expense

$11 to $12 million

Tax rate

27.5% to 28.5%

Diluted weighted-average share count

21.8 million shares

Non-GAAP earnings per diluted share

$1.85 to $2.00

DIVIDEND HISTORY ($ per share)

$0.54

$0.56

$0.60

$0.68

$0.78

$0.95

$1.075

$1.205

$1.24

$1.30

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016E

9

Current quarterly dividend rate

of $0.34 per share equates to

$1.36 annually

10

($ millions)

Capital Expenditures

SHARE REPURCHASE/CAPEX/DIVIDEND HISTORY

Share Repurchases

$69

$155

$5

$21

$19

$70

$63

$225

$0

$20

$19

$18

$21

$24

$28

$30

$32

$29

$45

$64

$65

$41

$39

$81

$118

$191

$75

$0

$50

$100

$150

$200

$250

2007

2008

2009

2010

2011

2012

2013

2014

2015

FY2016 Guidance

Capital Expenditures:

FY2016E:  $78-$82M

Share Repurchases:

Current authorization

up to $250M ($132M

purchased through

Nov. 30, 2015).

Dividends

547 restaurants in 18 states

as of 10/23/15

Full-service family restaurants featuring a

wide variety of menu items for both on-and-off premises dining

11

Net Sales (FY 2015)  $970 million

Average Annual Unit Sales (FY 2015)  $1.72 million

BOB EVANS RESTAURANTS:  OVERVIEW

ALL THREE DAYPARTS SERVED (2Q FY 2016)

Breakfast (6am-11am)

Lunch (11am-4pm)

Dinner

(4pm-10pm)

12

33%

36%

31%

Avg. Dine-In Guest Check/Per Guest (2Q FY 2016)  $18.54/$9.55

Average Carryout Check (2Q FY 2016)  $14.51

Click to edit Master title style

BOB EVANS RESTAURANTS:  IMMEDIATE PRIORITIES

13

Create relevant new product news

Broasted

®

Chicken Tenders launch

Three-Course Dinner relaunch

Continued development of Best in Class breakfast

Daily Farmhouse Specials test

Coffee flavor extension

Spend marketing funds more efficiently

and effectively

Reallocate funds from broadcast to local/digital

media

Focus on controlling labor, and

providing great food and great service

Flex hours with transaction trends

Deliver best-in-class service and dining experience

Broasted

®

is a registered trademark of The Broaster Company, LLC.

BOB

EVANS

RESTAURANTS:

FY’16

NEW

PRODUCT

NEWS

Launch of “Best-in-Class Breakfast”

Three-Course Dinner relaunch

Premium Broasted Chicken and Tenders

Customizable “Pick Two” meal offers

“10 under $6” values

$4 appetizers

New beverages

14

BOB

EVANS

RESTAURANTS:

BEST-IN-CLASS

BREAKFAST

Recent breakfast actions:

Launch of improved hotcakes and

omelets

Launch of seasonal toppings on Brioche,

Hotcakes, Waffles and Crepes

Launch of upgraded breakfast entrees

including fresh sausage, fresh cracked

eggs, fresh potatoes, fresh baked

biscuits, not-from-concentrate orange

juice, and better butter blend

15

BOB

EVANS

RESTAURANTS:

BEST-IN-CLASS

BREAKFAST

MARKETING

FOCUSED

ON

INGREDIENT

UPGRADES

16

BOB

EVANS

RESTAURANTS:

BEST-IN-CLASS

BREAKFAST

RATINGS

INCREASED SIGNIFICANTLY  IN TEST

KEY RATINGS SUMMARY –

PRE/POST TEST (test conducted May 2015)

% Excellent

Post

Pre

17

BOB

EVANS

RESTAURANTS:

NEW

PRODUCT

NEWS

AT

LUNCH

AND

DINNER TOO

18

3-Course Dinners

Broasted Chicken Tenders

BOB

EVANS

RESTAURANTS:

HOLIDAY

MERCHANDISING

19

BOB EVANS RESTAURANTS:  MOVING FROM TELEVISION

TO DIGITAL MEDIA

5 Mile

Radius

•

Reach qualified consumers

•

Align consumer mindset with various message             to

drive conversion

•

Trackable ROI

•

Cost efficient

•

Mass reach vehicle (households)

•

Aligns best with Brand Message

•

High reach in market but lacks cost efficiency due to

minimal targeting capability

DIGITAL MEDIA

TRADITIONAL TV

20

BOB

EVANS

RESTAURANTS:

FY’16

HOLIDAY

MARKETING

FOCUSED ON DIGITAL MEDIA

Approach: Rollout Broasted TV as foundation to support

product news

•

Media Markets: 11 Markets / 65% of sales

•

TV Impressions: 117MM

Approach: Turn around declining dinner day-part across all

markets with hyper-targeted digital as foundation

•

Media Markets: Entire System / 100% of sales

•

Digital Media Impressions : 134MM

FY’15 HOLIDAY

FY’16 HOLIDAY

1. Identify

Consumer

2. Show

Targeted

Ad

3. Drive

Consumer

to Site

4.

Retarget

with Offer

21

Click to edit Master title style

22

BOB EVANS RESTAURANTS:

ELEVATING THE GUEST EXPERIENCE

Improving

restaurant

service

Menu redesign and optimization

Brand repositioning influencing the look and feel of the restaurant

Lobby

Retail

Uniforms

Plateware

Bakery, Off-premises

Music & Lighting

TWO BRANDS

distinct geographic strengths

23

BEF FOODS:  OVERVIEW

24

FOUR KEY LINES OF BUSINESS

Refrigerated Side Dishes, Sausage, Frozen and Food Service

Sold at 30,000+ retail locations in 50 states, the District of Columbia

and Canada

sausage mix (% of total sales):  42%

Net Sales (FY’15) $379 million

*Note:  Insourced sales data reflects sales to Bob Evans Restaurants.

Side

Dishes

Other

Frozen

Retail

Sausage

11%

35%

36%

FY 2010 Sales Mix (pounds)

FY 2010 Sales Mix (pounds)

9%

9%

Side

Dishes

Other

Frozen

Retail

Sausage

11%

35%

36%

FY 2010 Sales Mix (pounds)

9%

9%

Food Service

(2% insourced*)

Side

Dishes

Other

4%

Frozen

4%

Food

Service

(6% insourced*)

Retail Sausage

19%

24%

49%

FY 2016 Q2 TTM Sales Mix (pounds)

FY 2016 Q2 TTM Sales Mix (pounds)

Side

Dishes

Other

4%

Frozen

4%

Food

Service

(6% insourced*)

Retail Sausage

19%

24%

49%

FY 2016 Q2 TTM Sales Mix (pounds)

sausage mix (% of total sales):  28%

BEF FOODS:  NORMALIZED MARGIN RANGE

25

BEF Food’s Normalized Operating

Margin Range is ~ 15% to 18%

*

Margin Driven by Four Key Factors:

1.

Favorable sales mix shift toward higher-margin, higher-growth

refrigerated side-dish products (currently 50%+ market share, 50%+

of pounds sold)

2.

Successful past and ongoing plant efficiency initiatives, including

recent plant network consolidation

3.

Favorable channel shift from lower-margin foodservice to higher-

margin branded retail

4.

Ongoing brand investments

* Excludes 100-200bps of shared service costs not currently allocated

BEF FOODS:

THE BIG PICTURE TODAY AND TOMORROW

National

refrigerated

sides category leader

#1 regional

breakfast

sausage brand

focused on heavy

users in our core

markets

Providing unique

differentiated

products to Bob

Evans Restaurants

Cost competitive

manufacturing

structure (LEAN)

Leveraging co-

packers to meet

seasonal demand

spikes

Leverage dominant

position in refrigerated

sides/seize double-digit

growth opportunities

Breakfast sausage

return to profitability

Opportunistically

replace foodservice

sales with branded

retail sales

Improved plant

performance (LEAN)

Continued ERP

implementation

Expansion of

refrigerated side-dish

facility (Lima, Ohio)

FY’16

26

FY’16 & Beyond

BEF FOODS: BUSINESS STRATEGY

Refrigerates Side Dishes –

Aggressively grow

Breakfast Sausage -

Maintain

Frozen -

Maintain

Food Service –

Be selective

Growing Bob Evans from a strong regional food brand to a national food

brand leveraging the dominant refrigerated sides position, while

protecting the #1 breakfast sausage position

(1)

in the core

27

(1)

Source: IRI Bob Evans Core MULO*, 52 weeks ending 11/1/15

BEF FOODS: RETAIL PRODUCT CATEGORIES

28

Refrigerated side dishes

Refrigerated side dishes

Breakfast sausage

Breakfast sausage

Frozen

Frozen

BEF FOODS:

SIDES UNIQUELY DELIVER A QUALITY EATING EXPERIENCE

•

RESTAURANT QUALITY

AT HOME  “I LOVE THE FACT THAT

I CAN PRETTY MUCH GET THE SAME

THING IN THE STORE AS I GET IN THE

RESTAURANT”

•

CONSISTENT TASTE

AND QUALITY  “THE QUALITY

AND TASTE IS ALWAYS THERE....HAVE

NEVER BEEN LET DOWN BY THIS

PRODUCT LINE”

•

CONVENIENT YET

SATISFYING “I LIKE THE EASE OF

PREPARATION. IN A RUSH, I KNOW THAT I

CAN STILL SERVE A SATISFYING SIDE

DISH”

•

QUALITY TASTE “IT DOESN'T

TASTE CHEAP” 

Repeat

%

Rate

–

Refrigerated

Side

Dishes

1

29

Source: IRI Panel; 52 weeks ending 11-1-15; Total US MULO; % of Buyers, 2x+

Buyers

65.0%

48.0%

50.1%

50.8%

43.1%

Bob Evans

Hormel

Private Label

Simply Diners

Resers

(1)

$7.25

$2.29

$2.58

$2.36

$1.95

Bob Evans

Hormel

Private Label

Simply Diners

Resers

Dinner Sides Dollar Velocity

BEF

FOODS:

SIDES

ON-SHELF

PERFORMANCE

(1)

Selling 3X Faster than

next closest competitor

•

#1 Dinner Sides Brand

•

50%+ Share of Dinner Sides Category 2Q’16

•

Mashed Potatoes item is #1 Dinner Side

•

Macaroni & Cheese item is #2 Dinner Side

•

Side Dishes sell 3x faster than any competitor

Source:  IRI; 52 weeks ending 11-1-15; Total US MULO; Dollar Share, Avg Weekly $/MM ACV.

47%

14%

12%

10%

9%

8%

Dollar Share ($552MM)

Bob Evans

Hormel

Private Label

Simply Diners

Resers

All Other

(1)

30

31

BEF FOODS:  PARTNERSHIP WITH SANDRA LEE DRIVES NATIONAL BRAND

AWARENESS

Partnership received national media

coverage

Positive consumer response to date

Message focuses on mealtime

solutions for busy families

Expands brand awareness beyond

core markets

Partnership

announcement

post on Bob

Evans social

media

On-line recipe club at www.bobevans.com

32

Appendix

33

2016 BOB EVANS RESTAURANTS’ PRIORITIES

Achieve profitable same-store sales growth through improved

guest experience and reduced discounting

Drive improved food costs through a new balanced daypart

marketing strategy, menu development, and product innovation

Better manage labor costs with an approach customized to each

restaurant’s sales performance

Installation of a new restaurant technology package, including a

new POS system and kitchen technology to drive improved food

costs, labor efficiency, and customer engagement

Continued evaluation of restaurant performance to drive future

closure and development decisions.  As previously announced, 20

underperforming locations closed in fiscal year 2016

34

SECOND-QUARTER FISCAL 2016:  SAME STORE SALES SUMMARY

Second-quarter Fiscal 2016 SSS% Day Part Performance –

Total Chain

Day Part

On-Premise

Off-Premise

Total

Breakfast

(1.2)%

7.6%

(0.4)%

Lunch

(3.4)%

(1.1)%

(3.1)%

Dinner

(7.6)%

(0.7)%

(6.2)%

Total

(3.9)%

0.9%

(3.2)%

Second-quarter

Fiscal

2016

SSS%

Day

Part

Performance

–

Restaurants

offering

Broasted

Chicken

Day Part

On-Premise

Off-Premise

Total

Breakfast

(1.9)%

6.3%

(1.0)%

Lunch

(4.1)%

(0.7)%

(3.6)%

Dinner

(6.7)%

1.0%

(4.9)%

Total

(4.3)%

1.5%

(3.3)%

Second-quarter

Fiscal

2016

SSS%

Day

Part

Performance

–

Restaurants

without

Broasted

Chicken

Day Part

On-Premise

Off-Premise

Total

Breakfast

(0.4)%

9.9%

0.4%

Lunch

(2.3)%

(2.1)%

(2.3)%

Dinner

(9.0)%

(5.0)%

(8.4)%

Total

(3.4%)

(0.4)%

(3.1)%

2016 BEF FOODS’ PRIORITIES

35

Drive double-digit growth of refrigerated side-dish products with

marketing investments and expanded points of distribution

Begin $20+ million expansion of Lima, Ohio, refrigerated side-dish

plant to meet strong consumer demand

Strategically employ trade spending to protect and selectively grow

core sausage markets

Successfully implement new ERP system across plant network to

drive continued efficiency gains and profitable sales growth

New product launches, most notably a line of natural side dishes

HISTORICAL

AND

FORECASTED

SOW

COST

PRICING

–

(cost/hundredweight)

36

Fiscal Year

Q1

Q2

Q3

Q4

Average

2016E

$38.75actual

$53.31actual

$55

$62

$52

2015

$87.87

$78.82

$67.79

$43.02

$69.41

2014

$63.24

$77.33

$72.36

$78.47

$73.23

2013

$54.19

$43.22

$58.73

$59.07

$53.87

2012

$57.06

$67.82

$60.56

$60.41

$61.58

2011

$59.52

$60.47

$51.16

$59.05

$57.17

10 year historical average sow cost: $51.43

Hillsdale, MI

2016 and beyond

4 Facilities,

Limited co-packing relationships

Asset Actions:

FY2011:

Bidwell and Galva fresh sausage

operations closed

FY2012:

Bidwell and Hillsdale transportation

centers closed; Springfield

distribution center sold

FY2013:

Consolidated transportation

operations; Kettle Creations (Lima)

acquired;

FY2014:

Bidwell, Springfield, Richardson

plant, office, and transportation

center closed; SWH sold; Sulphur

Springs and Lima expanded

FY2016:

Lima expansion to meet continued

strong consumer demand for

refrigerated sides.

Fresh sausage

Fresh sausage

Ready-to-eat

Side dishes

BEF FOODS INC. NETWORK OPTIMIZATION

37

Xenia, OH

Sulphur Springs, TX

Lima, OH

2007

Galva, IL

Bidwell, OH

Richardson, TX

Xenia, OH

Sulphur Springs, TX

SWH Fullerton, CA

Hillsdale, MI

Lima, OH

9 Facilities, 2 co-packers

50% Vertical Integration

Springfield, OH

Ready-to-eat

Fresh sausage

Sausage/Ready-

to-eat/ Dist. Ctr.

Fresh sausage

Copacker

Copacker

Fresh sausage/

Ready-to-eat

Fresh sausage

Mimi’s Café  prep kitchen

Fresh sausage/

Ready-to-eat

38

GAAP TO NON-GAAP RECONCILIATION: 2Q FISCAL 2016

(in thousands, except per share amounts)

Basic EPS

Diluted EPS

Three Months Ended

Three Months Ended

Three Months Ended

October 23, 2015

October 24, 2014

October 23, 2015

October 24, 2014

October 23, 2015

October 24, 2014

Operating Income (Loss) as Reported

Bob Evans Restaurants

$

13,323

$

20,627

BEF Foods

13,997

6,356

Corporate and Other

(15,886)

(17,971)

Operating Income

11,434

9,012

Net interest expense

2,883

2,203

Income Before Income Taxes

8,551

6,809

Provision for income taxes

2,120

770

Net Income as reported

6,431

6,039

$

0.29

$

0.26

$

0.29

$

0.25

Adjustments

Bob Evans Restaurants

Severance/Restructuring

318

—

Activism, Strategic Initiatives and Other

—

137

318

137

BEF Foods

Loss on Sale of Assets

3,606

—

—

Activism, Strategic Initiatives and Other

—

17

17,

00

0

3,606

17

Corporate and Other

Activism, Strategic Initiatives and Other

—

3,725

—

3,725

Total adjustments

Severance/Restructuring

318

—

Loss on Sale of Assets

3,606

—

Activism, Strategic Initiatives and Other

—

3,879

3,924

3,879

Non-GAAP operating income (loss)

Bob Evans Restaurants

13,641

20,764

BEF Foods

17,603

6,373

Corporate and Other

(15,886)

(14,246)

Total non-GAAP operating income

15,358

12,891

Adjustments to net interest expense

(480)

458

Non-GAAP net interest expense

2,403

2,661

Non-GAAP  Income Before Taxes

12,955

10,230

Adjustments to income tax provision

1,636

835

Non-GAAP Provision for Income Taxes

3,756

1,605

Non-GAAP Net Income

$

9,199

$

8,625

$

0.42

$

0.37

$

0.41

$

0.36

Weighted Average Shares Outstanding

22,115

23,509

22,233

23,735

39

GAAP TO NON-GAAP RECONCILIATION: 2Q FISCAL 2016

(in thousands)

Three Months Ended

Consolidated Results

Bob Evans Restaurants

October 23,

2015

% of Sales

October 24,

2014

% of Sales

October 23,

2015

% of Sales

October 24,

2014

% of Sales

Operating income as reported

Net Sales

$

325,021

333,279

230,741

$

241,151

Cost of sales

102,709

31.6

%

116,012

34.8

%

61,725

26.8

%

64,165

26.6

%

Operating wage and fringe benefit expenses

104,403

32.1

%

105,613

31.7

%

93,460

40.4

%

94,834

39.3

%

Other operating expenses

56,181

17.3

%

54,195

16.3

%

42,984

18.6

%

42,290

17.5

%

Selling, general and administrative expenses

29,902

9.2

%

28,972

8.7

%

5,433

2.4

%

5,572

2.3

%

Depreciation and amortization expense

20,107

6.2

%

19,475

5.8

%

13,531

5.9

%

13,663

5.7

%

Impairments

285

0.1

%

—

—

%

285

0.1

%

—

—

%

Total as reported

11,434

3.5

%

9,012

2.7

%

13,323

5.8

%

20,627

8.6

%

Adjustments

Net Sales

—

—

—

—

Cost of sales

—

—

—

—

Operating wage and fringe benefit expenses

—

(15)

—

(15)

Other operating expenses

—

(115)

—

(115)

Selling, general and administrative expenses

(3,924)

(3,749)

(318

(7)

Depreciation and amortization expense

—

—

—

—

Impairments

—

—

—

—

Total Adjustments

3,924

3,879

318

137

Non-GAAP operating income

Net Sales

325,021

333,279

230,741

241,151

Cost of sales

102,709

31.6

%

116,012

34.8

%

61,725

26.8

%

64,165

26.6

%

Operating wage and fringe benefit expenses

104,403

32.1

%

105,598

31.7

%

93,460

40.4

%

94,819

39.3

%

Other operating expenses

56,181

17.3

%

54,080

16.2

%

42,984

18.6

%

42,175

17.5

%

Selling, general and administrative expenses

25,978

8.0

%

25,223

7.6

%

5,115

2.3

%

5,565

2.3

%

Depreciation and amortization expense

20,107

6.2

%

19,475

5.8

%

13,531

5.9

%

13,663

5.7

%

Impairments

285

0.1

%

—

—

%

285

0.1

%

—

—

%

Total non-GAAP operating income

$

15,358

4.7

%

12,891

3.9

%

13,641

5.9

%

$

20,764

8.6

%

40

GAAP TO NON-GAAP RECONCILIATION: 2Q FISCAL 2016

(in thousands)

Three Months Ended

BEF Foods

Corporate and Other

October 23,

2015

% of Sales

October 24,

2014

% of Sales

October 23,

2015

October 24,

2014

Operating income (loss) as reported

Net Sales

$

94,280

$

92,128

$

—

$

—

Cost of sales

40,984

43.5

%

51,847

56.3

%

—

—

Operating wage and fringe benefit expenses

10,943

11.7

%

10,779

11.7

%

—

—

Other operating expenses

13,197

14.0

%

11,905

12.9

%

—

—

Selling, general and administrative expenses

10,964

11.6

%

6,918

7.5

%

13,505

16,482

Depreciation and amortization expense

4,195

4.4

%

4,323

4.7

%

2,381

1,489

Impairments

—

—

%

—

—

%

—

—

Total as Reported

13,997

14.8

%

6,356

6.9

%

(15,886

(17,971)

Adjustments

Net Sales

—

—

—

—

Cost of sales

—

—

—

—

Operating wage and fringe benefit expenses

—

—

—

—

Other operating expenses

—

—

—

—

Selling, general and administrative expenses

(3,606)

(17

—

(3,725)

Depreciation and amortization expense

—

—

—

—

Impairments

—

—

—

—

Total adjustments

3,606

17

—

3,725

Non-GAAP operating income (loss)

Net Sales

94,280

92,128

—

—

Cost of sales

40,984

43.5

%

51,847

56.3

%

—

—

Operating wage and fringe benefit expenses

10,943

11.7

%

10,779

11.7

%

—

—

Other operating expenses

13,197

14.0

%

11,905

12.9

%

—

—

Selling, general and administrative expenses

7,358

7.7

%

6,901

7.5

%

13,505

12,757

Depreciation and amortization expense

4,195

4.4

%

4,323

4.7

%

2,381

1,489

Impairments

—

—

%

—

—

%

—

—

Total non-GAAP operating income (loss)

$

17,603

18.7

%

$

6,373

6.9

%

$

(15,886

$

(14,246)

HISTORICAL SEGMENT AND “CORPORATE AND OTHER” DATA: 1Q FISCAL 2015

41

Q1 FY15

New*

Old

New*

Old

New

Old

Operating income as reported

Net sales

240,151

240,151

86,190

86,190

-

-

Cost of sales

63,211

26.3%

63,211

26.3%

50,957

59.1%

50,252

58.3%

-

-

Operating wages

94,840

39.5%

94,639

   ��  

39.4%

9,589

11.1%

9,589

11.1%

-

-

Other operating

42,505

17.7%

42,505

17.7%

11,209

13.0%

7,003

8.1%

-

-

S,G&A

8,855

3.7%

22,482

9.4%

7,114

8.3%

16,365

19.0%

16,447

-

Depreciation and amortization

14,236

5.9%

15,341

6.4%

4,276

5.0%

4,632

5.4%

1,461

-

Impairments

1,577

0.7%

258

0.1%

-

0.0%

-

0.0%

-

-

Operating income

14,927

6.2%

1,715

0.7%

3,045

3.5%

(1,651)

-1.9%

(17,908)

-

Adjustments

Operating wages

(14)

(14)

-

-

-

-

Other operating

(149)

(149)

-

-

-

-

S,G&A

(91)

(3,381)

(666)

(1,230)

(2,535)

-

Impairments

(1,577)

(258)

-

-

-

-

Total Adjustments

1,831

3,802

666

1,230

2,535

Non-GAAP Operating Income

Net sales

240,151

240,151

86,190

86,190

-

-

Cost of sales

63,211

26.3%

63,211

26.3%

50,957

59.1%

50,252

58.3%

-

-

Operating wages

94,826

39.5%

94,625

39.4%

9,589

11.1%

9,589

11.1%

-

-

Other operating

42,356

17.7%

42,356

17.6%

11,209

13.0%

7,003

8.1%

-

-

S,G&A

8,764

3.6%

19,101

8.0%

6,448

7.5%

15,135

17.6%

13,912

-

Depreciation and amortization

14,236

5.9%

15,341

6.4%

4,276

5.0%

4,632

5.4%

1,461

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Total non-GAAP operating income

16,758

7.0%

5,517

2.3%

3,711

4.3%

(421)

-0.5%

(15,373)

-

*Reflects reclassification of:

$1.3 million of impairment charges from S,G&A to Impairments for Bob Evans Restaurants

$0.2 million of restaurant wages from S,G&A to Operating wages for Bob Evans Restaurants

$4.3 million of shipping and handling costs from S,G&A to Other operating expenses for BEF Foods

$0.7 million of freight charges from Other operating expenses to Cost of sales for BEF Foods

$0.6 million of marketing costs from S,G&A to Other operating expenses for BEF Foods

All reclassifications made to conform prior year financials with current presentation

Bob Evans Restaurants

Corporate and Other

BEF Foods

HISTORICAL SEGMENT AND “CORPORATE AND OTHER” DATA:  2Q FISCAL 2015

42

Q2 FY15

New*

Old

New*

Old

New

Old

Operating income as reported

Net sales

241,151

241,151

92,128

92,128

-

-

Cost of sales

64,165

26.6%

64,165

26.6%

51,847

56.3%

51,847

56.3%

-

-

Operating wages

94,834

39.3%

92,006

38.2%

10,779

11.7%

10,779

11.7%

-

-

Other operating

42,290

17.5%

42,702

17.7%

11,905

12.9%

7,271

7.9%

-

-

S,G&A

5,572

2.3%

20,777

8.6%

6,919

7.5%

15,245

16.5%

16,482

-

Depreciation and amortization

13,663

5.7%

14,789

6.1%

4,323

4.7%

4,686

5.1%

1,489

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Operating income

20,627

8.6%

6,712

2.8%

6,355

6.9%

2,300

2.5%

(17,971)

-

Adjustments

Operating wages

(15)

(15)

-

-

-

-

Other operating

(115)

(115)

-

-

-

-

S,G&A

(7)

(2,803)

(17)

(946)

(3,725)

-

Total Adjustments

137

2,933

17

946

3,725

-

Non-GAAP Operating Income

Net sales

241,151

241,151

92,128

92,128

-

-

Cost of sales

64,165

26.6%

64,165

26.6%

51,847

56.3%

51,847

56.3%

-

-

Operating wages

94,819

39.3%

91,991

38.1%

10,779

11.7%

10,779

11.7%

-

-

Other operating

42,175

17.5%

42,587

17.7%

11,905

12.9%

7,271

7.9%

-

-

S,G&A

5,565

2.3%

17,974

7.5%

6,902

7.5%

14,299

15.5%

12,757

-

Depreciation and amortization

13,663

5.7%

14,789

6.1%

4,323

4.7%

4,686

5.1%

1,489

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Total non-GAAP operating income

20,764

8.6%

9,645

4.0%

6,372

6.9%

3,246

3.5%

(14,246)

-

*Reflects reclassification of:

$2.8 million of restaurant wages from S,G&A to Operating wages for Bob Evans Restaurants

$0.4 million of legal costs from Other operating expenses to S,G&A for Bob Evans Restaurants

$4.0 million of shipping and handling costs from S,G&A to Other operating expenses for BEF Foods

$0.7 million of marketing costs from S,G&A to Other operating expenses for BEF Foods

All reclassifications made to conform prior year financials with current presentation

Bob Evans Restaurants

BEF Foods

Corporate and Other

HISTORICAL SEGMENT AND “CORPORATE AND OTHER” DATA:  3Q FISCAL 2015

43

Q3 FY15

New*

Old

New*

Old

New

Old

Operating income as reported

Net sales

250,389

250,389

106,788

106,788

-

-

Cost of sales

69,134

27.6%

69,134

27.6%

55,410

51.9%

55,410

51.9%

-

-

Operating wages

98,317

39.3%

98,317

39.3%

10,799

10.1%

10,799

10.1%

-

-

Other operating

41,882

16.7%

41,882

16.7%

12,922

12.1%

7,214

6.8%

-

-

S,G&A

10,589

4.2%

27,348

10.9%

8,021

7.5%

18,997

17.8%

20,356

-

Depreciation and amortization

14,642

5.8%

15,693

6.3%

4,362

4.1%

4,710

4.4%

1,399

-

Impairments

1,672

0.7%

-

0.0%

-

0.0%

-

0.0%

-

-

Operating income

14,153

5.7%

(1,985)

-0.8%

15,274

14.3%

9,658

9.0%

(21,755)

-

Adjustments

Operating wages

-

(230)

-

-

-

-

Other operating

(378)

(378)

-

-

-

-

S,G&A

(571)

(7,521)

(189)

(1,933)

(7,252)

-

Impairments

(1,672)

-

-

-

-

-

Total Adjustments

2,621

8,129

189

1,933

7,252

-

Non-GAAP Operating Income

Net sales

250,389

250,389

106,788

106,788

-

-

Cost of sales

69,134

27.6%

69,134

27.6%

55,410

51.9%

55,410

51.9%

-

-

Operating wages

98,317

39.3%

98,087

39.1%

10,799

10.1%

10,799

10.1%

-

-

Other operating

41,504

16.6%

41,504

16.6%

12,922

12.1%

7,214

6.8%

-

-

S,G&A

10,018

4.0%

19,827

7.9%

7,832

7.3%

17,064

15.9%

13,104

-

Depreciation and amortization

14,642

5.8%

15,693

6.3%

4,362

4.1%

4,710

4.4%

1,399

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Total non-GAAP operating income

16,774

6.7%

6,144

2.5%

15,463

14.5%

11,591

10.9%

(14,503)

-

*Reflects reclassification:

$1.7 million of impairment charges from S,G&A to Impairments for Bob Evans Restaurants

$4.3 million of shipping and handling costs from S,G&A to Other operating expenses for BEF Foods

$1.4 million of marketing costs from S,G&A to Other operating expenses for BEF Foods

All reclassifications made to conform prior year financials with current presentation

Bob Evans Restaurants

BEF Foods

Corporate and Other

HISTORICAL SEGMENT AND “CORPORATE AND OTHER” DATA: 4Q FISCAL 2015

44

Q4 FY15

New*

Old

New*

Old

New

Old

Operating income as reported

Net sales

238,187

238,187

94,206

94,206

-

-

Cost of sales

62,167

26.1%

62,167

26.1%

40,853

43.4%

40,853

43.4%

-

-

Operating wages

93,882

39.4%

93,882

39.4%

10,499

11.1%

10,499

11.1%

-

-

Other operating

42,341

17.8%

42,341

17.8%

12,937

13.7%

7,558

8.0%

-

-

S,G&A

15,719

6.6%

30,882

13.0%

7,659

8.2%

20,651

21.9%

19,564

-

Depreciation and amortization

14,696

6.2%

15,709

6.6%

4,180

4.4%

4,514

4.8%

1,347

-

Impairments

2,851

1.2%

2,400

1.0%

2,761

2.9%

-

0.0%

-

-

Operating income

6,531

2.7%

(9,194)

-3.9%

15,317

16.3%

10,131

10.8%

(20,911)

-

Adjustments

Operating wages

(11)

(11)

-

-

-

-

Other operating

(66)

(66)

-

-

-

-

S,G&A

(7,191)

(10,457)

(153)

(3,876)

(3,777)

-

Impairments

(2,851)

(2,400)

(2,761)

-

-

-

Total Adjustments

10,119

12,934

2,914

3,876

3,777

-

Non-GAAP Operating Income

Net sales

238,187

238,187

94,206

94,206

-

-

Cost of sales

62,167

26.1%

62,167

26.1%

40,853

43.4%

40,853

43.4%

-

-

Operating wages

93,871

39.4%

93,871

39.4%

10,499

11.1%

10,499

11.1%

-

-

Other operating

42,275

17.7%

42,275

17.7%

12,937

13.7%

7,558

8.0%

-

-

S,G&A

8,528

3.6%

20,425

8.6%

7,506

8.0%

16,775

17.8%

15,787

-

Depreciation and amortization

14,696

6.2%

15,709

6.6%

4,180

4.4%

4,514

4.8%

1,347

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Total non-GAAP operating income

16,650

7.0%

3,740

1.6%

18,231

19.4%

14,007

14.9%

(17,134)

-

*Reflects reclassification of:

$0.5 million of impairment charges from S,G&A to Impairments for Bob Evans Restaurants

$4.4 million of shipping and handling costs from S,G&A to Other operating expenses for BEF Foods

$2.8 million of impairment charges from S,G&A to Impairments for BEF Foods

$1.0 million of marketing costs from S,G&A to Other operating expenses for BEF Foods

All reclassifications made to conform prior year financials with current presentation

Bob Evans Restaurants

BEF Foods

Corporate and Other

HISTORICAL SEGMENT AND “CORPORATE AND OTHER” DATA:  FISCAL 2014

45

FY14

New*

Old

New*

Old

New

Old

Operating income as reported

Net sales

956,579

956,579

371,973

371,973

-

-

Cost of sales

244,871

25.6%

244,871

25.6%

206,906

55.6%

206,082

55.4%

-

-

Operating wages

365,698

38.2%

365,698

38.2%

40,609

10.9%

40,609

10.9%

-

-

Other operating

164,901

17.3%

164,901

17.3%

54,003

14.6%

31,926

8.6%

-

-

S,G&A

26,626

2.8%

80,723

8.4%

30,506

8.2%

68,781

18.5%

65,001

-

Depreciation and amortization

60,446

6.3%

63,872

6.7%

14,514

3.9%

15,584

4.2%

4,496

-

Impairments

13,850

1.4%

9,380

1.0%

3,000

0.8%

3,000

0.8%

-

-

Operating income

80,187

8.4%

27,134

2.8%

22,435

6.0%

5,991

1.6%

(69,497)

-

Adjustments

Operating wages

-

-

49

49

-

-

Other operating

-

-

107

107

-

-

S,G&A

567

(5,971)

(4,125)

(4,074)

(2,017)

-

Depreciation and amortization

51

51

-

-

-

-

Impairments

(13,850)

(9,380)

(3,000)

(3,000)

-

-

Total Adjustments

13,232

15,300

6,969

6,918

2,017

-

Non-GAAP Operating Income

Net sales

956,579

956,579

371,973

371,973

-

-

Cost of sales

244,871

25.6%

244,871

25.6%

206,906

55.6%

206,082

55.4%

-

-

Operating wages

365,698

38.2%

365,698

38.2%

40,658

10.9%

40,658

10.9%

-

-

Other operating

164,901

17.3%

164,901

17.3%

54,110

14.6%

32,033

8.6%

-

-

S,G&A

27,193

2.8%

74,752

7.8%

26,381

7.1%

64,707

17.4%

62,984

-

Depreciation and amortization

60,497

6.3%

63,923

6.7%

14,514

3.9%

15,584

4.2%

4,496

-

Impairments

-

0.0%

-

0.0%

-

0.0%

-

0.0%

-

-

Total non-GAAP operating income

93,419

9.8%

42,434

4.4%

29,404

7.9%

12,909

3.5%

(67,480)

-

*Reflects reclassification:

$4.4 million of impairment charges from S,G&A to Impairments for Bob Evans Restaurants

$18.6 million of shipping and handling costs from S,G&A to Other operating expenses for BEF Foods

$4.3 million of marketing costs from S,G&A to Other operating expenses for BEF Foods

$0.8 million of freight charges from Other operating expenses to Cost of sales for BEF Foods

All reclassifications made to conform prior year financials with current presentation

Bob Evans Restaurants

BEF Foods

Corporate and Other